A farmer in Guiguinto, Bulacan planted 50 mango trees on his property whichare now fruit bearing. For the mangoes produced for the next 5 years, the farmer wasoffered the following by two wholesale buyers:Buyer A offered a down payment of P50,000 and P1,000 for the produce fromeach tree each year to be paid at the end of each of the 5 years.Buyer B will not pay any downpayment, but will pay P1,200 for the producefrom each tree each year to be paid at the beginning of each year for 5 years.If money is worth 12% effective, which of the offers should the farmer accept?

Given information : Buyer A proposal : Down payment 50000 Produce from each tree 1000…

Answered: A farmer in Guiguinto, Bulacan planted…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Lucky Strike, a bowling alley, purchased new equipment from Brunswick in the amount of $850,000. Brunswick is allowing Luck Strike me to amortize the cost of the equipment with monthly payments over 2 years at 12% interest. What equal monthly payment will be required to amortize this loan?
Blackstone Company purchased a new software system costing $35,000. To finance the purchase, Blackstone signed a contract agreeing to pay the cost over the next 8 years, with a payment due every six months; the first payment will be made six months from the date of purchase. Blackstone's usual interest rate is 10%. What is the amount of the payment required (rounded to the nearest dollar)? 's usual 096, What is the amount of the Select one: O a. 16,030 O b. 6,560 O c. 3,229 d. 2,575 e. None of the above
A farmer bought a rice harvester worth ₱ 1.45 M if paid in cash. The tractor may be purchased by installment to be paid within five years. Money is worth 8% compounded annually. Determine the amount of each annual payment if all payments are made (a) at the end of each year, and (b) at the beginning of each year
A student bought a rental property for $40 000.00 down and monthly payments of $1000.00 for 5 years. What is the equivalent cash price if money is worth 5.75% compounded semi-annually? 85647.32 O95288.35 O 105284.25 O 92122.41 4
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9
Bertha bought a new home entertainment system today from Andre's Electronics. She will receive a cash-rebate of $232.00 from Andre's Electronics today, pay $719.00 to Andre's Electronics in 1 year, receive a cash rebate of $1,638.00 from Andre's Electronics in 2 years, and pay $4,985.00 to Andre's Electronics in 4 years. If the discount rate is 18.38 percent, then what is the present value of the cash flows associated with this transaction? O $-1,744.87 (plus or minus 3 dollars) O $-2,211.42 (plus or minus 3 dollars) O $-530.14 (plus or minus 3 dollars) O $-1,200.61 (plus or minus 3 dollars) O none of the answers are within 3 dollars of the correct answer
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